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What is capitalization of asset mean


Prasanth kumar Kamisetty

Prasanth kumar Kamisetty

CA Inter

12K+

20-Jul-20 17:06

391

Answers (1)

Capitalisation of assets means to record expenses incurred for assets in the balance sheet as an asset and not charge it as an expenses in profit and loss account. Generally expenses which are incurred at a time of installation of asset or upto the assets are first ready to use are capitalised.


Ramcharan Tuduru

Ramcharan Tuduru

CA Inter

2K+

20-Jul-20 19:42

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